Drafting term loan agreements manually requires hours of research across multiple legal resources, careful coordination of complex financial terms, and meticulous attention to covenant structures and default provisions. Corporate attorneys spend valuable billable time searching for standard language, verifying compliance requirements, and ensuring consistency across loan documentation—time that could be better spent on strategic client advisory work.
Drafting comprehensive term loan agreements traditionally requires 6-10 hours of attorney time to ensure all commercial terms, covenants, representations, and default provisions are properly documented. The complexity of balancing lender protections with borrower flexibility, while maintaining regulatory compliance and addressing transaction-specific nuances, makes this a time-intensive and expensive process that delays deal closings.
CaseMark automates term loan agreement drafting by analyzing your transaction documents and generating complete, execution-ready agreements in minutes. Our AI incorporates all essential provisions—from loan economics and repayment terms to comprehensive covenants and default remedies—while customizing the document to your specific transaction parameters and risk allocation preferences.
This workflow is applicable across multiple practice areas and use cases
Term loan agreements are core financing documents used across all commercial lending transactions, from equipment financing to working capital loans.
This workflow directly addresses the primary document type in loan and financing practice, making it essential for attorneys handling commercial lending transactions.
Financial institutions and regulated lenders require compliant term loan documentation that meets regulatory standards for commercial lending activities.
Financial services attorneys need to ensure loan agreements comply with banking regulations and industry standards, making automated generation with authoritative sources valuable.
Acquisition financing often requires term loan agreements to fund purchase transactions, particularly in leveraged buyouts and middle-market M&A deals.
M&A attorneys frequently coordinate debt financing as part of transaction structures, requiring efficient drafting of term loan documentation alongside purchase agreements.
Private credit funds and business development companies use term loans as investment vehicles, requiring documentation that satisfies securities law compliance.
Securities attorneys working with private credit funds need term loan agreements that align with fund investment strategies and regulatory requirements for debt securities.
At minimum, you need the basic commercial terms including the parties' legal names, loan amount, interest rate structure, maturity date, and repayment schedule. Uploading a term sheet or commitment letter will allow CaseMark to extract these details automatically. Optional documents like financial statements, existing loan agreements, and corporate resolutions help customize financial covenants and other provisions to your specific transaction.
Yes, CaseMark can incorporate customized financial covenants such as debt service coverage ratios, leverage ratios, minimum liquidity requirements, and capital expenditure limitations. If you provide financial statements, the system can suggest appropriate covenant thresholds based on the borrower's historical performance. You can specify exact covenant levels and testing periods to match your credit requirements.
The generated agreement includes comprehensive prepayment provisions that you can customize based on your transaction. You can specify whether prepayments are permitted without penalty, require advance notice, include lockout periods, or trigger prepayment fees calculated as a percentage of principal, yield maintenance, or make-whole premiums. The system also addresses mandatory prepayment from asset sales, insurance proceeds, or debt issuances.
CaseMark generates agreements with standard compliance provisions and structures interest calculations using market-standard methodologies. However, you should verify compliance with specific state usury limits, licensing requirements, and applicable federal regulations based on your jurisdiction and transaction type. The system provides a foundation that incorporates best practices, but final compliance review should be conducted based on your specific circumstances.
Absolutely. The generated term loan agreement is fully editable and serves as a comprehensive first draft that you can refine to address transaction-specific requirements, negotiated provisions, or firm preferences. CaseMark provides institutional-quality documentation that covers all standard provisions, giving you a strong foundation to customize rather than starting from scratch.